Table 29-2
Suppose people in the adult population in a small country are classified based on their age.

Labor Force Status

Age

Less than 55 55 and Older

Number employed 400,000 100,000
Number unemployed 25,000 7,000
Number in population 600,000 200,000

Refer to Table 29-2. Suppose that the natural rate of unemployment is 5% for those under 55 and 3% for those 55 and older. The cyclical unemployment rate for those under 55 is

Question

Table 29-2
Suppose people in the adult population in a small country are classified based on their age.

​

Labor Force Status

Age

Less than 55         55 and Older

Number employed	400,000	100,000
Number unemployed	25,000	7,000
Number in population	600,000	200,000

​

Refer to Table 29-2. Suppose that the natural rate of unemployment is 5% for those under 55 and 3% for those 55 and older. The cyclical unemployment rate for those under 55 is

BlackTom AI · Accepted Answer

Unemployment rate for those under 55 = unemployed / labor force, so start by computing labor force and then cyclical unemployment.

1. Relevant knowledge points and concepts
- Labor force = employed + unemployed.
- Unemployment rate = (unemployed ÷ labor force) × 100.
- Cyclical unemployment = actual unemployment rate − natural rate of unemployment.

2. Step-by-step reasoning
- For under 55: employed = 400,000; unemployed = 25,000.
- Labor force (under 55) = 400,000 + 25,000 = 425,000.
- Actual unemployment rate (under 55) = 25,000 ÷ 425,000 = 0.058823529 ≈ 5.8823529%.

3. Intermediate calculation steps
- 25,000 ÷ 425,000 = 25 ÷ 425 = 0.058823529 → ×100 = 5.8823529%.
- Natural rate given = 5.0%.
- Cyclical unemployment (under 55) = 5.8823529% − 5.0% = 0.8823529% ≈ 0.88%.

4. Why the correct answer is correct
- The calculation follows the definitions: we used the correct labor force (employed + unemployed) to get the actual unemployment rate, then subtracted the stated natural rate. That yields 0.88 percentage points of unemployment attributable to cyclical factors for the under-55 group.

5. Why other approaches would be incorrect (briefly)
- Using population instead of labor force (25,000 ÷ 600,000 = 4.17%) is wrong because the unemployment rate uses the labor force, not total population.  
- Using unemployed ÷ employed (25,000 ÷ 400,000 = 6.25%) is also incorrect because the denominator must be labor force.  
- Any result that does not subtract the 5% natural rate from the calculated 5.882% actual rate is incorrect.

6. Conclusion and confirmation
- Cyclical unemployment for those under 55 is 0.88%, which is less than the cyclical unemployment rate for those 55 and older (about 3.54%). This matches the provided answer: "0.88%, which is less than the cyclical unemployment rate for those 55 and older."

类似问题

Table 1: Population, labour force and employment data for Country Y [table] Working age population | 29,500,000 Labour force | 18,650,000 Unemployed people | 1,800,000 [/table] According to Table 1, what is the unemployment rate in Country Y?

Which of the following scenarios would cause the official unemployment rate to underestimate the true level of labour market concern?

In that same steady-state, the unemployment rate is _________ percent. Round your answer to the nearest tenth of a percent.

If 85% of the unemployed find jobs and 3% of the employed lose their jobs, the natural rate of unemployment will be ________ percent. Round your answer to the nearest tenth of a percent.

Question at position 12 at the peakon the potential linein contractionin expansionat the trough

Which of the following trees corresponds to a potential parse of the ambiguous sentence below, with correct syntactic categories? Some diagnostics are provided.

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单